Qatar agrees five-year LNG supply deal with India's GAIL, sources say

Qatar has agreed a deal to supply India's top natural gas distributor GAIL with liquefied natural gas for five years, three sources familiar with the matter said on Monday.

QatarEnergy Trading will ship one cargo a month to GAIL starting in April, the sources said.

The gas will be priced at around 115% of Henry Hub plus $5.5-$6 per million British thermal units (mmBtu), the sources said.


QatarEnergy and GAIL did not immediately respond to requests for comment.

India is boosting gas imports as Prime Minister Narendra Modi aims to raise the share of gas in the country's energy mix to 15% by 2030 from about 6.5% now.

Qatar, among the world's top LNG exporters, is India's biggest LNG supplier.

The small Gulf country is pushing to play a larger role in Asia and Europe as competition from top supplier the United Sates increases. It plans to expand its liquefaction capacity to 142 million tons per year by 2027 from 77 million.